Former legal boss at Super Retail has lodged a case in the Federal Court

Super Retail boss Anthony Heraghty, chairman Sally Pitkin and the retailer have been hit with a court case by its former legal boss claiming victimisation, harassment and a cover-up.

Super Retail boss Anthony Heraghty, chairman Sally Pitkin and the retailer have been hit with a court case by its former legal boss claiming victimisation, harassment and a cover-up. Picture: Flavio Brancaleone/NCA NewsWire

The former chief legal officer of Super Retail, Rebecca Farrell, has filed proceedings in the Federal Court against the company, its chief executive and chairman to enforce a settlement agreement relating to her dismissal, claiming she was bullied, harassed, victimised and ultimately sacked when she raised “serious corporate governance breaches”.

The looming courtroom battle is the first in what could be a lengthy, damaging and potentially salacious trial that is first seeking to enforce an alleged settlement between Ms Farrell and Super Retail over her dismissal, but could escalate if that fails and her lawyers raise in court several improper workplace behaviours that Ms Farrell is claiming to have knowledge of.

These sensational claims – which include allegations of an affair between the Super Retail CEO and his former head of human resources – are likely to be contained in a statement of claim that has been lodged with the Federal Court as well as an affidavit by Ms Farrell, with the statement of claim only accessible to the public once the first ­directions hearing for the case is held. However, parties to the case can seek to have the statement of claim suppressed and hidden from the media, investors and the public.

A statement on Tuesday from workplace law firm Harmers, which is representing several former executives at Super Retail including Ms Farrell, said Ms Farrell would also pursue claims around a conflict of interest by CEO Anthony Heraghty for failing to disclose a secret relationship he was having with the head of HR, Jane Kelly.

Super Retail chairman Sally Pitkin, a veteran boardroom director who has also sat on the boards of Link Group, Star Entertainment and Billabong International, has also been named in the looming case before the Federal Court that is likely to reveal a string of scandalous claims against the retailer, whose chains include Rebel, Supercheap Auto, Macpac and BCF.

According to Federal Court documents, Super Retail non-executive director Annabelle Chaplain, a former banker and director of Seven Group, has also been named as a respondent to the lawsuit. Ms Chaplain is chair of the Super Retail board risk and sustainability committee. Other respondents include Kevin Fig­ueiredo, Super Retail’s chief people and safety officer, and another person listed under the pseudonym “Mx Whistleblower”.

The Australian last week reported that Super Retail went to the Federal Court in a pre-emptive strike to suppress potentially commercially confidential, sensitive or inflammatory material from being made public if a court case by aggrieved former staff was launched. That battle now looks to be upon it.

Super Retail CEO Anthony Heraghty in a Rebel store. Picture: Jane Dempster/The Australian

Separately to the threatened Federal Court case, two of Super Retail’s former most powerful female executives, Ms Farrell and former co-secretary Amelia Berczelly, have filed an action in the Fair Work Commission citing contraventions involving the dismissal of their employment.

Super Retail now faces a battle on two fronts, and at two different courtrooms over allegations first revealed in April when the retailer, whose annual sales are about $4bn a year, revealed it was the subject of a string of claims by then unknown senior staff around workplace misconduct, bullying and claims of a secret ­affair between Mr Heraghty and Ms Kelly.

Clockwise from top left: Super Retail director Annabelle Chaplain, CEO Anthony Heraghty, chairman Sally Pitkin, former chief HR officer Jane Kelly, chief people and safety officer Kevin Figueiredo and former chief legal officer Rebecca Farrell.

On Tuesday, Harmers said that on May 3 Super Retail terminated the employment of Ms Farrell, who was chief legal officer and company secretary of the group, reporting directly to the CEO.

“Rebecca is a whistleblower who exposed serious corporate governance issues within the company,” Harmers said. “As a practising solicitor, Rebecca has a paramount duty to the administration of justice and, under solicitor practice rules, must avoid any compromise to her integrity and professional independence.”

On Monday, Ms Farrell filed proceedings in the Federal Court naming Super Retail, Mr Heraghty and Ms Pitkin.

“Rebecca’s position, as set out in the proceedings, is that a settlement agreement with Super ­Retail was reached on May 6, 2024. She is seeking to enforce that settlement agreement,” Harmers said.

It is unclear what settlement was reached, if at all, between Ms Farrell and Super Retail over her departure from the business.

The Harmers statement said if the court finds that there was not a settlement agreement, Ms Farrell would pursue the full extent of her claims, including that Super Retail “bullied, harassed, victimised and dismissed” her because she raised serious corporate governance breaches, including a conflict of interest on the part of the CEO by his failure to disclose the nature of his relationship with the then chief human resources officer of the company.

These court claims will also include, according to Harmers, that Super Retail breached the Corporations Act, including whistleblower provisions, breached Super Retail’s own whistleblower policy, and breached Super Retail’s contractual obligation to provide a safe workplace.

Super Retail later confirmed it was notified of a statement of claim in relation to workplace matters filed by its former chief legal officer in the Federal Court by Harmers.

“The statement of claim is consistent with the allegations previously announced, save that the allegations have only been made by one employee and not two as previously expected,” Super Retail said in an ASX statement.

“The group does not accept the claims that are set out in the statement of claim. As previously announced, Super Retail Group will defend these court proceedings in relation to these matters.

“As these matters are now the subject of litigation, the group does not intend to make any further comment at this time. Super Retail Group will continue to update the market on this matter as appropriate.”